India central bank chief says not all applicants to get bank licences

CHENNAI, India (REUTERS) - The Reserve Bank Of India (RBI) Governor Duvvuri Subbarao said on Thursday that not all eligible companies that have applied for bank licences will be granted one.

Earlier this week, the RBI said it had received 26 applications for new bank licenses.

RBI Governor Subbarao also said an increase in non-performing assets at lenders was a matter of concern, but added that banks were well capitalised, during a media briefing at the conclusion of the central bank's board meeting.

He also said that RBI does not plan to pay interest on the mandatory cash reserves that lenders hold at the central bank.